Data center construction spending rose 57% from July 2025 to July 2026, according to U.S. Census Bureau data compiled by the Associated General Contractors of America. Since January 2020, it’s up nearly 700%.
That growth doesn’t stop at the construction site. Manufacturers and logistics companies are feeling it too, as orders for switchgear, cooling equipment, metal enclosures, and cable assemblies keep coming.
For manufacturers, a full order book is a win… until you can’t ship on time. Then trouble starts fast.
The ripple effect hits two places: the supply chain and the workforce. The second is harder to fix. Skilled workers take time to find, and leaning harder on your current team leads to burnout and missed deadlines. If you expect more data center orders in 2027, now’s the time to plan your staffing.
Who Supplies a Data Center? Follow the Order Book
Data centers power the cloud services, digital tools, and artificial intelligence (AI) applications businesses and consumers use every day. Building one takes a steady supply of equipment and components from manufacturers across the country.
If your plant makes any of the following, you may already be feeling the demand:
- Electrical equipment: switchgear, transformers, and power distribution units
- Cooling systems: industrial HVAC equipment, heat exchangers, and liquid cooling components
- Metal products: server racks, equipment enclosures, and steel components
- Cable and connectivity products: cable assemblies, fiber connections, and cable management systems
You don’t need to be near a construction site to benefit. A plant can ship enclosures or cable assemblies to a project several states away, and tier-two suppliers feel the demand through their larger customers. The challenge is finding enough qualified people to keep the line moving.
Why Is Fast Growth a Staffing Risk for Manufacturers?
Many manufacturers are investing in new facilities, plant expansions, and added production lines. Smaller suppliers face the same pressure when a key customer suddenly places a much larger order.
A backlog can support long-term growth, but only if your team can get the work out the door. When production grows faster than your workforce, problems show up fast:
- Hiring lags behind demand. Roles that call for specialized skills or manufacturing experience take longer to fill.
- Overtime climbs. When current employees cover the gaps, overtime costs rise, fatigue sets in, and morale suffers.
- Overhiring creates its own risk. Adding too many permanent employees raises payroll costs if demand slows.
How Do You Build a Flexible Manufacturing Staffing Plan for 2027?
Planning for growth doesn’t mean hiring a wave of full-time employees at once. A flexible staffing strategy helps you prepare for more orders while keeping control of your costs and your hiring process.
1. Plan Hiring Around Your Production Schedule
Start with your order book. Look at expected delivery dates and any planned expansions. Then estimate when you’ll need more people and which roles will be hardest to fill, such as assemblers, machine operators, welders, and quality inspectors. Don’t wait until a new line is installed to start hiring for it.
2. Keep Your Core Team Focused and Flex Around It
Your permanent employees bring experience and know your process. Keep them on the most critical work, and add support around them:
- Temporary staff fill short-term gaps and cover your busiest stretches.
- Temp-to-hire lets you evaluate a worker on the floor before making a permanent offer.
- Direct hire recruiting finds long-term employees for roles that need a lasting commitment and a strong culture fit.
3. Start Recruiting Before Every Position Is Urgent
Waiting until you’re short-staffed to start hiring adds stress and slows everything down. Review each department now and estimate which roles you’ll need over the next 12 months. A staffing partner can help you identify candidates before your schedule gets tight. Hiring early also gives new employees time to get up to speed before the big orders arrive.
4. Review Your Plan as Demand Changes
Forecasts shift, and your hiring plan should shift with them. Review order trends and employee workload on a regular schedule, such as every quarter. If demand rises, scale up. If orders slow, a flexible workforce keeps you from carrying more permanent headcount than you need.
A quick scenario: Say a switchgear customer adds a second large order with a June 2027 ship date. Instead of adding a full shift of permanent hires, you could keep your experienced assemblers on the critical builds, bring in temporary staff for kitting, material handling, and packaging, and move your strongest temporary workers into permanent roles once the forecast holds.
Prepare Your Workforce for 2027 With Snelling
Data center construction is creating real opportunity for manufacturers, but meeting that demand takes the right people. Snelling offers temporary staffing, temp-to-hire, and direct hire solutions for manufacturing and light industrial roles, from assemblers to machine operators. Whether you need more production staff for a data center order or a crew to start a new shift, we can help.
Don’t wait until your backlog outpaces your workforce. Contact your local Snelling office to talk through your 2027 staffing plan.
Frequently Asked Questions
Why Is Data Center Construction Driving Demand for Manufacturers?
Data center construction is driving demand for manufacturers because every new facility needs electrical equipment, cooling systems, metal enclosures, and cabling. Census Bureau data compiled by the Associated General Contractors of America shows data center construction spending rose 57% year over year in July 2026, and those projects pull orders from suppliers nationwide. Snelling offices are seeing that demand show up in manufacturers’ hiring plans.
What Types of Manufacturers Supply Data Centers?
Manufacturers that supply data centers include makers of switchgear, transformers, power distribution units, industrial HVAC and liquid cooling equipment, server racks, enclosures, and cable assemblies. Smaller component and fabrication shops often supply those larger manufacturers, too. Snelling staffs manufacturing and light industrial roles for plants of every size, from assemblers to machine operators.
How Can Snelling Help a Plant Scale Up Production Without Overhiring?
Snelling can help a plant scale up production without overhiring by adding temporary staff for peak periods while your permanent core team stays on critical work. Snelling’s temp-to-hire placements also let you move proven workers into permanent roles once demand is confirmed.
When Should Manufacturers Start Hiring for 2027 Orders?
Manufacturers should start hiring for 2027 orders as soon as delivery dates are on the books. Recruiting for skilled production roles takes time, and new employees need time to train before volume ramps up. A local Snelling office can help you map out hiring needs now, before the schedule gets tight.
What Is the Difference Between Snelling’s Temp-to-Hire and Direct Hire Services?
The difference between Snelling’s temp-to-hire and direct hire services is when the worker becomes your permanent employee. A temp-to-hire worker starts on a temporary basis so you can evaluate their fit first, while a direct hire joins your team as a permanent employee from day one. Snelling offers both options, along with temporary staffing.
